STEPSTONE GROUP Announces Q4 FY2023 Earnings Results on March 31, 2023
May 31, 2023
🌥️Earnings Overview
On March 31, 2023, STEPSTONE GROUP ($NASDAQ:STEP) released their earnings results for the fourth quarter of the fiscal year 2023, which concluded on May 24. The company reported a total revenue of USD 172.4 million, signifying a decrease of 52.7% from the same quarter last year. Additionally, their net income was reported to be USD 28.8 million, a 31.1% drop from the same period in FY2022.
Price History
On Wednesday, STEPSTONE GROUP announced its fourth-quarter earnings results for FY2023. The stock opened at $22.1 and closed at $21.9, down 1.8% from its previous closing price of 22.3. This caused a slight decrease in the company’s market capitalization, but their overall performance for the quarter was impressive.
This is a testament to their financial discipline and strong risk management strategies. Overall, STEPSTONE GROUP’s Q4 performance was very impressive and has strengthened investors’ confidence in the company’s long-term prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Stepstone Group. More…
| Total Revenues | Net Income | Net Margin |
| -67.57 | -18.4 | -5.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Stepstone Group. More…
| Operations | Investing | Financing |
| 151.18 | -30.81 | -108.02 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Stepstone Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.5k | 1.87k | 12.28 |
Key Ratios Snapshot
Some of the financial key ratios for Stepstone Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 74.7% | 89.6% | 55.1% |
| FCF Margin | ROE | ROA |
| -215.4% | -3.1% | -0.7% |
Analysis
GoodWhale has conducted an analysis of STEPSTONE GROUP‘s financials, and we have identified it to have a high health score of 8/10 with regard to its cashflows and debt. This suggests that STEPSTONE GROUP is capable to sustain future operations in times of crisis. We have also identified that STEPSTONE GROUP is strong in asset, dividend, profitability and weak in growth. Based on this analysis, we classified STEPSTONE GROUP as a ‘cow’, a type of company we conclude that has the track record of paying out consistent and sustainable dividends. These characteristics make STEPSTONE GROUP an attractive option for investors looking for lower-risk and consistent returns. Investors interested in such a company may include pension fund managers, fiduciaries, and individual investors who are looking for a reliable source of income. More…
Peers
The company has a strong track record of delivering superior returns to its investors. The company’s competitors include Auctus Investment Group Ltd, Hamilton Lane Inc, and Partners Group Holding AG.
– Auctus Investment Group Ltd ($ASX:AVC)
Auctus Investment Group Ltd is a Hong Kong-based company principally engaged in the provision of financial services. The Company operates its businesses through three segments. The Corporate Finance segment is engaged in the provision of corporate finance services, including acting as a placement agent, underwriter, manager or financial adviser in relation to public and private placement of securities and initial public offerings (IPOs), as well as providing financial advisory services. The Asset Management segment is engaged in the provision of discretionary and non-discretionary asset management services. The Treasury segment is engaged in the provision of money market and foreign exchange services.
– Hamilton Lane Inc ($NASDAQ:HLNE)
Lane is a leading global alternative investment management firm specializing in private markets investing. The company has over $140 billion of assets under management as of 2022 and employs more than 1,000 professionals in over 20 offices around the world. The firm’s investment strategies include private equity, real estate, and credit.
Lane has a market cap of $2.47 billion as of 2022 and a return on equity of 50.2%. The company has a strong focus on private markets investing, which has helped it to grow its assets under management to over $140 billion. The firm employs more than 1,000 professionals in over 20 offices around the world and has a diversified investment portfolio that includes private equity, real estate, and credit.
– Partners Group Holding AG ($LTS:0QOQ)
As of 2022, Partners Group Holding AG has a market cap of 23.5B and a return on equity of 38.44%. The company is a leading global private markets investment manager, with over EUR 68 billion in assets under management and more than 1,000 professionals across 20 offices worldwide. Partners Group is a pure-play private markets investment management firm, serving over 950 institutional investors worldwide. The firm invests across the private equity, private real estate, private infrastructure and private debt asset classes, through its global platform.
Summary
Investors in STEPSTONE GROUP may be concerned about the company’s recent earnings report, showing a decrease in both total revenue and net income for the fourth quarter of FY2023. Total revenue fell by 52.7% year-over-year to USD 172.4 million, while net income dropped by 31.1% to USD 28.8 million. This is a worrying sign for investors as the company’s financial performance has been declining since the previous quarter, raising questions about its future prospects. Investors should evaluate the company’s performance over time and make sure that any investments are made with caution.
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